So you bought a car, and now you’re ready to sell. Perhaps the monthly payments are too high, or you want to upgrade to a roomier model. But the problem is, you still owe money on the loan financing, so you’re not sure if you can even sell it. The good news is that you can sell a car you are still financing. But to make the sale a success, there are a few things you should know about the process.
Determine the Value of Your Car
While you may still owe money, the market is working in your favor because used cars are in high demand right now. However, the first thing you should do is get an idea of what your vehicle is worth. You might owe more or less than the actual value of the car, and knowing your situation will help you make better decisions.
You only need to do a little homework to get an idea of your car’s current value. Check listings for cars of the same make, model, and age as your car. In addition, be honest about your car’s history and whether that includes any fender benders. You can also use vehicle valuation tools on many dealership and auto websites. Finally, consider the overall condition of your car and whether you still have the accessories it came with.
Figure Out Exactly How Much You Owe
You might think you know how much money you still owe. But to get the most accurate number, call your lender or go online to find the payoff balance. Next, compare the payoff balance to the value you estimated your car to have. If your payoff balance is higher than the current value, you may have to pay the difference when you sell your car to settle your financing.
Private Party vs. Dealership
Selling your car to a private party is much different than selling to a dealership. If you sell to a private party, you may be able to get a slightly higher price, but the process is more complicated. You’ll want to get in touch with your lender to ensure you process the paperwork correctly and sign over the title to the new owner.
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Get the Guidance You Need
Instead of a private sale, many people opt to sell or trade in their car to a dealership. The dealership will have its own department to assess the car’s condition and handle all the paperwork. Selling to the dealership is a popular option for people who want to upgrade to a new make or model. In many cases, the dealership will issue financing that includes the remainder of your previous loan.
Selling your car, whether you still owe money or not, is a big step. At Doug Henry Ford of Ayden in Ayden, North Carolina, you can get your questions answered and make the sale confidently. Make an appointment to speak with a finance expert about your options today.
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